Amid the battle between bulls and bears, the Lido token (LDO) is facing a crucial challenge at the $2.55 mark these past few days, which begs: what will be the next move for this asset?
In the current situation, Lido DAO (LDO) is presented with a price established around $2.38, representing an increase of 17.83% in the last month.
This significant growth in value has sparked increased interest among cryptocurrency investors and enthusiasts.
With a market capitalization of around $2.12 billion, Lido DAO is positioned at #33 on the cryptocurrency list according to its official CoinMarketCap data.
This recent rally in price has generated renewed optimism in the financial community, prompting deeper analysis into the short and medium-term prospects of Lido DAO and its token, LDO.
With a recent attempt to break above the July highs, resistance at the $2.2 and $2.55 levels has been a persistent obstacle.
The bears have held out between $2.55 and $2.7, and among other news, a recent transfer of 500 thousand Lido to Binance has raised concerns about possible selling pressure.
However, Lido has found support in the growth of Blast, a Layer 2 blockchain. Blast, billed as “Ethereum’s only layer 2 with native performance for ETH and stablecoins,” promises an innovative experience according to information provided in its official website.
This project offers the “auto-compounding” feature of the user’s balance, where sent stablecoins are transformed into “USDB”, a stablecoin that auto-compounds through MakerDAO’s T-Bill protocol.
The flow of ETH deposits has highlighted Lido’s increasing stake control on Ethereum, generating positive expectations.
THE FUNDAMENTALS PROJECT AN OPTIMISTIC PANORAMA
Despite facing persistent resistance at $2.55, the market structure remains bullish according to analysis. The RSI has shown bullish momentum, while on-balance volume has increased, indicating strength in the trend.
Fibonacci levels highlight possible support areas at $2.27 and $1.97, if the $2.2 level fails in the coming weeks. A break above $2.65 could trigger a rally towards $3.4 or even higher levels.
Meanwhile, indicators such as the average age of coins point to accumulation on the network, but the increase in inactive tokens raises concerns about a possible sale by holders, which could result in a price drop.
At this crossroads, investors must consider this data before making decisions. Technical analysis and indicators provide guidance, but the inherent volatility of the crypto market requires caution and continuous analysis to understand the full picture of Lido (LDO).
Technical charts courtesy of TradingView.
Disclaimer: The opinions expressed do not constitute investment advice. If you are looking to make a purchase or investment, we recommend that you always do your research.